Eastern District of California
Press releases recorded for this federal judicial district.
Stockton Man Pleads Guilty to Dealing Guns Without A LicenseRead the Press Release
SACRAMENTO, Calif. —Johnny Torres, 22, of Stockton, pleaded guilty today to dealing firearms without a license, United States Attorney Benjamin B. Wagner announced.
According to court documents, Torres sold five firearms to an undercover agent at a house in Stockton. On January 15, 2014, Torres sold three firearms to the undercover agent for $1,200: a .22-caliber Ruger Mark 1 pistol, a 9 mm Hi-Point pistol, and a 9 mm KEL-TEC P11 pistol. On February 20, 2014, Torres sold the undercover agent the following firearms for $550: a Mossberg 500 12-gauge shotgun and a short-barreled Ruger 10/22 rifle. Torres never had a license to sell firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Torres currently is out of custody. Co-defendants, Donovan Torres, Melissa Torres, and Sally Evans are also out of custody pending trial. Co-defendant Jorge Magana is in custody pending trial.
Torres is scheduled to be sentenced by United States District Judge Morrison C. England Jr. on February 5, 2015. Torres faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Sierra Army Depot Employee Pleads Guilty to Stealing Sophisticated Military EquipmentRead the Press Release
SACRAMENTO, Calif. — Devon Gregory Biggs, 38, formerly of Reno, Nevada, pleaded guilty today to theft of government property, United States Attorney Benjamin B. Wagner announced.
According to court documents, while a civilian employee at the Sierra Army Depot (SIAD) in Herlong in Lassen County, Biggs stole numerous items of sophisticated military equipment, including: machine gun components, night vision goggles, laser GHOST Illumination technology, and low-light video recording equipment. On at least one occasion, Biggs sold the stolen equipment for marijuana.
This case is the product of an investigation by the Law Enforcement Division of the United States Army, Naval Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Jean Hobler and Christiaan Highsmith are prosecuting the case.
Biggs is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on January 28, 2015. Biggs faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Trio Charged in $1.5 Million Disability Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Three former Oakland residents have been arraigned in Sacramento on charges of using stolen identities to defraud the State of California of disability insurance benefits, United States Attorney Benjamin B. Wagner announced.
Jermila McCoy, 32, and Zeffrey Cain, 38, were arraigned today, and Timnesha Wilson, 21, was arraigned on Wednesday, November 5, 2014. All three defendants entered pleas of not guilty. McCoy remains in custody, and both Cain and Wilson were released on bond. Their next court date is December 18, 2014, at 9:00 a.m. before United States District Judge Morrison C. England Jr.
According to the indictment returned by a federal grand jury in Sacramento on October 23, 2014, the defendants used stolen identities of individuals throughout California to file for disability benefits with the California Employment Development Department (EDD). The defendants then caused those disability benefits claims to be certified using the stolen identities of doctors throughout the State of California. Many of the doctors whose identities were used do not certify any disability claims as part of their practice. For example, one such doctor works at a state prison and only treats inmates as part of her practice. After a claim was filed and certified, the defendants received the fraudulent disability benefits at addresses they controlled. Over 250 stolen identities were used and over $1.5 million in fraudulent benefits was received.
This case is the product of an investigation by the United States Postal Inspection Service, the United States Marshals Service, and the California Employment Development Department, Criminal Investigations. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Las Vegas Attorney Sentenced to 9 Years in Prison for Child Exploitation Offenses in BakersfieldRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Charles Max Pollock, 43, of Las Vegas, to nine years in prison, to be followed by 20 years of supervised release, for travel in interstate commerce with the intent to engage in criminal sexual activity, United States Attorney Benjamin B. Wagner announced.
Pollock’s sentencing followed his guilty plea, which entered on August 27, 2014. According to court documents, Pollock used an alias and posed as a photographer to contact an adult female who had posted an advertisement on Craigslist in Bakersfield seeking a modeling opportunity. The ad noted that her minor son had experience as a model. Pollock traveled from Las Vegas to Bakersfield, rented a hotel room, and took sexually explicit images of the minor. Pollock returned to Las Vegas and continued to communicate with the minor and his mother. Pollock arranged to meet the minor and the minor’s girlfriend at a different hotel in Bakersfield on August 15, 2013. He encouraged the minors to engage in sexually explicit conduct for purposes of taking photographs of the minors. Pollock paid the minors for each of the “photo shoots” and encouraged them not to tell anyone about the conduct.
Pollock is an attorney who has been licensed to practice law in Nevada and California. He has been in custody since September 20, 2013, when he was arrested on state charges for a separate offense in Las Vegas. Pollock has also previously pleaded guilty to those state charges, and he will be sentenced by the state court in Nevada now that his federal court proceedings are completed.
This case was the product of an investigation by the FBI and the Bakersfield Police Department. Assistant United States Attorney David Gappa prosecuted the case.
This case has been brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bakersfield Marijuana Store Employee SentencedRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Gustavo Angel Salinas, 26, of Bakersfield, today to 21 months in prison for conspiring to violate federal narcotics laws, United States Attorney Benjamin B. Wagner announced today.
Salinas was sentenced following his guilty plea last August. According to court documents and proceedings, Salinas worked as a “budtender” at ANP Collective in East Bakersfield. Co-defendant Raymond Arthur Gentile, 53, is the owner of the marijuana storefront. The store came to the attention of Bakersfield police officers after complaints and a report of false imprisonment and assault of a customer who had been accused of stealing a gram of marijuana. In responding to the report, the officers found, among other things, a Glock firearm and evidence of an indoor marijuana cultivation operation. DEA agents responded with a search warrant and during the search found an indoor marijuana cultivation operation and seized 170 marijuana plants, 25 pounds of processed marijuana, a 12 gauge shotgun, and $68,173 in cash. The cash has been forfeited as proceeds of drug trafficking.
The case against Gentile is still pending. He is next scheduled to appear in federal court on March 9, 2015. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Drug Enforcement Administration and the Bakersfield Police Department. Assistant United States Attorney Karen A. Escobar is prosecuting this case.
Sutter County Woman Pleads Guilty to Participation in Large-Scale EDD Benefit Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Iqila Begum Khan, 34, of Live Oak, pleaded guilty today to conspiring to commit mail fraud in a fictitious employer scheme, United States Attorney Benjamin B. Wagner announced.
Iqila Khan is one of 28 defendants charged in a long-running Yuba City-based scheme that involves several family members. She is the daughter of defendant Mohammad Nawaz Khan, sister of Mohammad Adnan Khan, and niece of Mohammad Shahbaz Khan and Mohammad Riaz Khan. To date, 15 defendants have pleaded guilty to various charges. A jury trial for Mohammad Nawaz Khan and five others is scheduled for January 12, 2015.
According to court documents, the defendants set up farm labor contracting businesses that purported to provide labor to harvest various crops in Sutter and Yuba Counties. They registered the businesses with the California Employment Development Department and reported employees and their wages to EDD. The organizers of the scheme sold fraudulent paystubs to other people and reported the wages to EDD. The purchasers of the fake wages could then subsequently file for unemployment or disability benefits with EDD based on their fictitious “employment.” Because the amount of the benefit that EDD pays is based on the claimant’s prior earnings, customers were charged more for documents reflecting higher wages.
According to her plea agreement, Iqila Khan sold fake wages on behalf of the companies at a rate of $250 for every $1,000 of reported “wages.” Iqila Khan generally sold these fraudulent wages at an office on Palora Avenue in Yuba City. During the investigation, Iqila Khan was secretly recorded making a sale, where she explained to the undercover buyer how and when to file for unemployment benefits based on the fake wages and what to say if the buyer was contacted by the state. Law enforcement later executed a search warrant at the Palora Avenue office and found a black ledger providing lists of names and amounts that were to be listed as fictitious wages with EDD as well as hundreds of fraudulent paystubs associated with the scheme.
Over the course of the conspiracy, it is alleged that the defendants reported false wages for over 1,000 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment benefits. The scheme is alleged to have defrauded EDD of more than $14 million.
The prosecution of this fraud scheme has consisted of two indictments in 2012, two in 2013, and a fifth indictment in 2014. The last indictment charges one of the original defendants and another man with a new scheme to sell false wages and two other individuals with committing perjury before the federal investigating grand jury.
This case is the product of an investigation by the Federal Bureau of Investigation, the Department of Labor, Office of Inspector General, and the California Employment Development Department, Investigation Division. Assistant United States Attorneys Jared C. Dolan and Sherry D. Haus are prosecuting the case.
Iqila Khan is scheduled to be sentenced by Chief United States District Judge Morrison C. England Jr. on January 29, 2015, and faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Suisun City Man Charged with Federal Firearm ChargeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment today against Frank Gowans III, 26, of Suisun City, charging him with felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, Gowans was arrested by Vallejo police officers on October 12, 2014. The officers had observed Gowans walking with a black object in his hand. When the officers approached, Gowans discarded the object. An officer went to the area where Gowans had discarded the object and found a 9 mm handgun. Gowans was on parole at the time of arrest and is a convicted felon.
This case is the product of an investigation by the FBI and the Vallejo Police Department. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.
If convicted, Gowans faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Pleads Guilty to Growing Marijuana in Lassen National ForestRead the Press Release
SACRAMENTO, Calif. —Daniel Gomez-Gonzalez, 32, of Mexico, pleaded guilty today to cultivating marijuana plants, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 11, 2014, United States Forest Service agents and Tehama County Sheriff’s deputies raided a marijuana cultivation site near the North Fork Antelope Creek in Tehama County in Lassen National Forest. Law enforcement counted and eradicated a total of 5,287 marijuana plants at the cultivation site. They also found a Remington shotgun, more than 1,000 pounds of trash and various types of fertilizers, insecticides, and animal poisons in the grow site. Gomez-Gonzalez was arrested on a forest trail west of the site. He told law enforcement that he was responsible for spraying, watering, and fertilizing the marijuana plants and that he expected to earn a portion of the profits generated from the marijuana grown at the site. Co-defendant Eric Perez was arrested the same day in the marijuana cultivation site.
This case is the product of an investigation by the United States Forest Service and Tehama County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Gomez-Gonzalez is scheduled to be sentenced by United States District Judge Troy L. Nunley on January 22, 2015. He faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Eric Perez has already pleaded guilty to manufacturing marijuana. He will be sentenced by Judge Troy L. Nunley on January 8, 2015.
Former Fresno Business CFO Charged with Embezzling and Money LaunderingRead the Press Release
FRESNO, Calif. — Anthony Lester, 51, of Fresno, was indicted today by a federal grand jury, charging him with mail fraud and money laundering, United States Attorney Benjamin B. Wagner announced.
According to court documents, Lester was the controller at Century Builders in Fresno, and later the Chief Financial Officer. During his employment, he had access to the financial accounts of another Fresno business, Highlands Energy Services. Between November 2010 and December 2011, Lester used this access to divert money from bank accounts and credit cards held by Highlands Energy Services into other financial accounts, including Lester’s own PayPal Inc. account. He attempted to conceal the embezzled funds by transferring them into his personal bank account. In total, Lester embezzled approximately $300,000 from Highlands Energy Services.
According to the indictment, employees of Highlands Energy Services and Century Builders questioned Lester about payments to some vendors because they were inconsistent with company practices. One of the questionable vendors was American Products, which was in fact a fictitious company invented by Lester to conceal his embezzlement. In response to such questions, Lester attempted to make it appear that American Products was a legitimate vendor. First, he visited a local supply company near Fresno claiming to be from “Valley Builders” (also a fictitious company). Then, he purchased weather stripping, dead bolts, spring hinges and thresholds. He packaged the goods for delivery to Highlands and labeled them as coming from American Products in New York. Then Lester sent the goods from a Fresno UPS facility.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno Police Department. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.
If convicted of mail fraud, Lester faces a maximum penalty of 20 years in prison, a $250,000 fine, and three years of supervised release. If convicted of money laundering, he faces a maximum penalty of 20 years in prison, and a fine of $500,000 or twice the value of the property involved, whichever is greater, and three years of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Biotronik Inc. to Pay $4.9 Million to Resolve Claims That Company Paid Kickbacks to PhysiciansRead the Press Release
SACRAMENTO, Calif. – Biotronik Inc. of Lake Oswego, Oregon, has agreed to pay the United States $4.9 million to resolve allegations under the False Claims Act that the company made various improper payments to induce physicians to use devices manufactured and sold by Biotronik, United States Attorney Benjamin B. Wagner and the Justice Department announced today.
“When medical device manufacturers make improper payments to physicians, they encourage medical decision-making based on financial gain rather than the best interests of patients,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Today’s resolution demonstrates the Department of Justice’s continuing commitment to ensuring that beneficiaries of federal health care programs receive appropriate medical care.”
The settlement resolves allegations that Biotronik, through the payment of kickbacks to physicians, caused hospitals and ambulatory surgery centers to submit false claims to Medicare and Medicaid for the implantation of Biotronik pacemakers, defibrillators, and cardiac resynchronization therapy devices. Biotronik allegedly induced electrophysiologists and cardiologists practicing in Nevada and Arizona to continue using Biotronik devices, or to convert to Biotronik devices, by paying the implanting physician in the form of repeated meals at expensive restaurants and inflated payments for membership on a physician advisory board.
“Today’s resolution of claims underscores one of the key purposes of the Anti-Kickback law – to ensure that the judgment exercised by health care providers in treating Medicare and Medicaid patients is not influenced by illegal payments,” said, U.S. Attorney Wagner.
The settlement announced today stems from a whistleblower complaint filed by a former Biotronik employee, Brian Sant, pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the United States and to share in the proceeds of the suit. The act permits the United States to intervene and take over the lawsuit, as it did in this case as to some of Sant’s allegations. Sant will receive approximately $840,000 of the federal settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23 billion through False Claims Act cases, with more than $14.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with Biotronik Inc. was the result of a coordinated effort among the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Eastern District of California; the U.S. Department of Health and Human Services, Office of Inspector General, and the FBI.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Arrest Made in Ventura for $5 Million Movie Studio Construction Scam in Northern CaliforniaRead the Press Release
SACRAMENTO, Calif. — A 32-count indictment was unsealed today after the arrest of Carissa Carpenter, 51, formerly of Malibu, charging her with mail fraud, wire fraud, and three counts of making a false statement to a government agent, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 1997 until October 24, 2014, Carpenter represented to investors and others that she had a project to build a movie studio in Northern California. As a result of the scheme, investors, firms who did work for Carpenter and municipalities collectively lost over $5 million on the project.
According to the indictment, Carpenter claimed that her projected movie studio complex would be profitable and environmentally friendly and was supported by well‑connected people in the entertainment industry. She said that she had invested hundreds of millions of dollars of her own money in the project and that she had arranged financing for the project but needed investment or bridge loans until the alleged financing was complete. The locations of the project varied: El Dorado Hills, north of the Sacramento International Airport in Sutter County, Lathrop, the former naval base on Mare Island in Vallejo, and Dixon, among other places. Additionally, Carpenter represented that reputable architecture, construction, design, and public relations firms were involved in the project, and that she had or was in the process of finalizing the purchase of the land where the studio would be built. As a result, investors gave Carpenter millions of dollars to invest in her studio project.
The indictment alleges that in fact, Carpenter used investor money to fund her personal expenses and extravagant lifestyle. Contrary to her claims, the Hollywood people were not involved in the project at all or had little involvement. Similarly, the architecture, construction, design, and public relations firms were not involved or had done only preliminary work on the project. She also did not own or purchase property for the studio.
Further, during the investigation in July 2013, Carpenter told an FBI agent that she told investors that she was going to use their money for personal expenses, that she had used 50-75 percent of investor money for the project, and that two well-known Hollywood producers had committed to her Lathrop project and that she had spoken to one of them. All of these statements were false.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
If convicted, Carpenter faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 or twice the gross loss or gain from the fraud scheme. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Redding Man Sentenced to Three Years in Prison for Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Gerald Steven Kronberger, 35, of Redding, today to three years in prison for possessing images of minors engaged in sexually explicit conduct, United States Attorney Benjamin B. Wagner announced.
This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Michelle Rodriguez prosecuted the case.
According to court documents, on June 19, 2012, HSI executed a federal search warrant at Kronberger’s residence. Forensic analysis of seized electronic equipment later indicated that Kronberger possessed many images and videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
South Lake Tahoe Man Sentenced to One Year in Prison for Workers’ Compensation FraudRead the Press Release
SACRAMENTO, Calif. — Mark E. Leung, 60, of South Lake Tahoe, was sentenced today by United States District Judge John A. Mendez to one year in prison and ordered to pay $160,000 in restitution for making a false statement to obtain workers’ compensation benefits, United States Attorney Benjamin B. Wagner announced.
According to court documents, Leung worked for the United States Postal Service until 1987 when he claimed he sustained a work-related injury. Leung never returned to full-time employment with the Postal Service and began receiving workers’ compensation benefits in 1987. From September 2007 through November 2012, Leung received approximately $160,000 in benefits from the Department of Labor, which administers the program for the United States Postal Service. To obtain the benefits, Leung submitted an annual certification form and also had his medical providers attest that he could not perform any work due to the pain that limited his mobility and range of movement. In fact, Leung was not so disabled. Among other things, while claiming he was totally disabled from employment, Leung maintained a yearly ski pass for Heavenly Ski Resort in Lake Tahoe where he regularly skied for at least 40 days per ski season. Moreover, Leung was as also observed performing arduous physical labor on numerous days.
This case was the product of an investigation by the United States Postal Service, Office of Inspector General and the Department of Labor, Office of Inspector General. Assistant United States Attorney Todd Pickles prosecuted the case.
Former Fugitive Sentenced to Five Years in Prison for Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Scott Edward Cavell, 31, of Sacramento, was sentenced today by United States District Judge John A. Mendez to five years in prison and ordered to pay $7.4 million in restitution, for committing wire fraud, United States Attorney Benjamin B. Wagner announced.
Scott Cavell and co-defendant Christopher Warren defrauded Florida-based lender Taylor, Bean and Whitaker Mortgage Corporation of $7.4 million. As part of the mortgage fraud scheme, Warren and Cavell transferred the stolen funds out of their various bank accounts and converted the funds into more “travel friendly” gold and coins. Warren and Cavell then fled outside the United States with the money they wrongfully acquired from TB&W. Cavell fled to Ireland on a commercial flight. He was apprehended by Irish authorities and spent nine months in an Irish jail before voluntarily agreeing to return to the United States to face justice.
Warren fled first to Ireland and then on to Lebanon in a private charter aircraft. He was arrested attempting to reenter the United States under a fraudulently obtained passport with tens of thousands of dollars hidden in his cowboy boots. He pleaded guilty and on September 11, 2012, was sentenced to 14 years in prison
This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, and the Department of State Diplomatic Security Service. Assistant United States Attorneys Russell L. Carlberg and Paul A. Hemesath prosecuted the case.
Two Sacramento Men Receive Prison Sentences of over 17 Years & 18 Years Respectively for Roles in Attempted Robbery of Armored Vehicle GuardRead the Press Release
SACRAMENTO, Calif. — United States District Court Judge William B. Shubb today sentenced Sacramento residents Raymell Lamar Eason, 44, to 18 years and eight months in prison; and Keith Lamont Smith, 38, to 17 years and eight months in prison for conspiring to rob an armored car and attempted robbery of an armored car, U.S. Attorney Benjamin B. Wagner announced.
This case was the product of an investigation by the Sacramento Violent Crimes Task Force, which includes the Federal Bureau of Investigation, Sacramento Police Department, and the Sacramento County Sheriff’s Office. Assistant United States Attorneys William S. Wong and Michelle Rodriguez prosecuted the case.
According to court documents, on April 17, 2012, Eason and Smith planned to rob an armored car in the Wal-Mart parking lot on Florin Road in Sacramento. Having conducted surveillance on prior occasions, the two men planned to use a Taser gun on an armored car guard. They waited for the guard to leave the Wal-Mart with its currency deposits, and then Eason shot the guard with the Taser. Smith waited nearby in the getaway vehicle. However, the guard recovered faster than anticipated and was able to shoot Eason. Eason was arrested after the botched robbery, and Smith was arrested later the same day.
Both defendants were on federal supervision for prior criminal felony offenses at the time of the attempted robbery.Kern County Man Pleads Guilty to Counterfeiting U.S. CurrencyRead the Press Release
FRESNO, Calif. — Alfonso Castellon, 41, of Bakersfield, pleaded guilty today to counterfeiting U.S. currency and possessing images for counterfeiting purposes, United States Attorney Benjamin B. Wagner announced.
According to court documents, from January 2011 to March 2014, Castellon, with intent to defraud, counterfeited Federal Reserve Notes in $100 and other denominations. In March 2014, a search of his residence revealed sample images of $100 bills and computer equipment, printers, and ink associated with counterfeiting, along with a flash drive containing images of $100 bills. Castellon estimated he produced approximately 20 counterfeit $100 bills per week, or approximately $100,000 per year.
This case is the product of an investigation by the United States Secret Service, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Castellon is scheduled to be sentenced by United States District Judge Anthony W. Ishii on January 12, 2015. Castellon faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fresno Man Sentenced for Laser Strikes on CHP PlaneRead the Press Release
FRESNO, Calif. — Andrew Zarate, 20, of Fresno, was sentenced today to one year in prison to be followed by two years of supervised release, for aiming a laser pointer at a California Highway Patrol airplane, Air 43, United States Attorney Benjamin B. Wagner announced.
According to court documents, Air 43 was struck up to 50 times by a powerful green laser pointer. As a result, the pilot suffered temporary blindness and Air 43 was forced to break away from a burglary in progress at a Fresno middle school. The CHP pilot reported that he gets struck by lasers almost every night and this incident was “the worst.”
Co-defendant David Walter Fee, 22, of Fresno, was sentenced in September to 18 months in prison.
According to the Federal Aviation Administration, in 2013, there were 3,960 reported incidents nationwide of laser strikes on aircraft cockpits, or an average of 10.85 strikes per day. Airports in the Eastern District of California reported over 82 laser strikes in 2013 – more than six laser illumination incidents per month. The Fresno Yosemite International Airport reported the highest number of laser illuminations followed by the airports in Bakersfield and Sacramento. This year, there have been 115 laser strikes or 11.5 reported laser incidents per month in this district, with Fresno leading in the number of reported laser incidents.
The case was the product of an investigation by the FBI’s Fresno Office, California Highway Patrol, and Fresno Police Department. Assistant U.S. Attorneys Karen A. Escobar and Michael G. Tierney prosecuted this case.
Former Kern County Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
FRESNO, Calif. —Rosaura M. Tinajero, 57, of Omaha, Nebraska, formerly of Wasco, California, pleaded guilty today to theft of Social Security benefits, United States Attorney Benjamin B. Wagner announced today.
According to court documents, Tinajero’s mother, a Social Security benefits recipient died in 1987. The Social Security Administration was not notified of her death and distribution of benefits continued until June 2009. From March 1995 through June 2009, Tinajero obtained more than $148,000 in benefits meant for her deceased mother via check and direct deposit, and she personally used the money knowing that she was not entitled to the benefits.
This case is the product of an investigation by the Social Security Administration, Office of Inspector General and the United States Secret Service. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Tinajero is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on January 26, 2015. Tinajero faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Livingston Convenience Store Owner Indicted for USDA Benefits FraudRead the Press Release
FRESNO, Calif. — Bharpur Singh, 39, of Ceres, was indicted Thursday by a federal grand jury for defrauding the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, United States Attorney Benjamin B. Wagner announced.
According to the indictment, Singh owns and operates Dollar Mart, a convenience store in Livingston that was authorized to accept SNAP benefits from customers to pay for eligible food items through the electronic benefits transfer (EBT) card program. EBT cards, similar to debit cards, are swiped at the point of sale and the cardholder enters a Personal Identification Number. The amount of the purchase is immediately deducted from the customer’s SNAP account and the retailer’s bank account is credited dollar for dollar. Retailers are not permitted to trade cash for SNAP benefits or accept SNAP benefits as payment for ineligible items.
According to the indictment, from October 2008 until May 2014, Singh traded the benefits for cash rather than for eligible food products as required under the program. Singh would swipe a SNAP benefit recipient’s EBT card for a certain amount, give the benefit recipient cash for approximately half the amount of the “transaction,” and keep approximately one-half for himself. On numerous occasions, Singh accepted SNAP benefits as payment for ineligible items, including beer, cigarettes, toilet paper, toys and diapers.
This case is the product of an investigation by the U.S. Department of Agriculture’s Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Christopher Baker is prosecuting the case.
If convicted of the charges, Singh faces a maximum statutory penalty of twenty years in prison and a $250,000 fine for each wire fraud count, and five years in prison and a $10,000 fine for each count of unauthorized use of USDA benefits. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Attorney Names District Election OfficerRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced today that Assistant United States Attorney Kevin C. Khasigian will serve as District Election Officer (DEO) for the Eastern District of California for the November 4, 2014, general elections. The DEO is responsible for overseeing complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and with the confidence that each vote will count and our elections will not be tainted by fraud,” U.S. Attorney Wagner said. “The Department of Justice will act promptly and aggressively to protect the voting rights of our citizens and the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls and will combat violations whenever and wherever they occur. The Department seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against crimes such as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. Actions designed to interrupt or intimidate voters at polling places such as questioning or challenging them, photographing or videotaping them under the pretext of uncovering illegal voting, may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
While polls are open on Election Day, Khasigian can be reached by the public in the Eastern District of California at the following telephone numbers: (916) 554-2700 and (916) 554-2723.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI can be reached by the public in the Eastern District of California at (916) 481-9110.
Complaints about ballot access or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or (202) 307-2767.
Former Elk Grove Man Sentenced to 15.5 Years in Prison for $20 Million Investment Fraud and False Statements in BankruptcyRead the Press Release
SACRAMENTO, Calif. — Vincent Singh, 45, formerly of Elk Grove, was sentenced today by United States District Judge Morrison C. England Jr. to 15.5 years in prison for wire fraud and false statements in bankruptcy, United States Attorney Benjamin B. Wagner announced.
According to court documents, Singh carried out an investment fraud through an entity known as the Perfect Financial Group. He targeted 190 members of the ethnic Indian Fijian community for an investment fraud that grossed approximately $20 million. Singh told investors that he was using their money for hard money lending. In fact, Singh used $12 million for gambling, made $2 million in cash withdrawals, spent $880,000 on a film project, and spent more than $1 million on other business ventures. Singh also used millions of dollars of investor money to pay other victims and give Perfect Financial the false appearance of success. The scheme collapsed, and when Singh declared bankruptcy, he failed to disclose 19 of the bank accounts that he had used in the investment fraud.
At sentencing, Judge England said, “Crimes such as these are the absolute worst because the defendant who engages in these activities preys upon the good nature, the friendships, the relationships and everything else to try to entice these victims into giving up everything, and they gave up everything.”
U.S. Attorney Wagner stated: “Singh convinced people who considered him a friend to invest with him. Rather than invest the funds, he spent it on gambling and frivolous projects. Today’s sentence brings a measure of justice, but it cannot right the wrongs Singh’s conduct visited on his nearly 200 victims. This office will continue to prosecute investment fraud and will bring to justice those who violate the trust of the law-abiding members of our community.”
This case was the product of an investigation by the Federal Bureau of Investigation with the assistance of the Office of the U.S. Trustee. Assistant United States Attorney Matthew D. Segal prosecuted the case.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force that was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. For more information on the task force, please visit www.StopFraud.gov.Deputy United States Marshal One of Three Indicted as Part of Armed Robbery CrewRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Clorenzo Griffen, 37, of Fort Lauderdale, Florida, and Miami residents Andrew Jamison, 39, and Rodney Rackley, 24, charging them with robbery, drug conspiracy, and brandishing firearms in furtherance of a crime of violence and drug trafficking, United States Attorney Benjamin B. Wagner announced.
All three defendants have made initial appearances in federal court and been ordered detained. They are scheduled to be arraigned on November 6, 2014.
According to court documents, on October 11, 2014, a CHP officer in Sutter County attempted to stop a speeding Jeep Patriot. The three defendants eventually abandoned the vehicle, and were subsequently taken into custody with the assistance of the Sutter County Sheriff’s Department. At the time of his arrest, Griffen possessed a loaded .40-caliber firearm. Further investigation revealed that Griffen is a deputy United States Marshal from Miami, Florida.
Court documents further indicate that before fleeing from the CHP, the defendants had robbed three individuals at gunpoint of approximately 24 pounds of marijuana.
This case is the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, Sutter County Sheriff’s Office, Yuba City Police Department, and the Sutter County District Attorney’s Office. Assistant United States Attorney Jason Hitt is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison on each of the robbery and drug trafficking charges and a $1 million fine. The firearm charge carries a mandatory minimum sentence of seven years in prison that must run consecutive to any sentence imposed on the robbery or drug charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
United States Attorney and California Attorney General Collaborate to Present First in A Series of Labor Trafficking TrainingsRead the Press Release
FRESNO, Calif. — On Friday, October 24, 2014, a training aimed at combatting the serious crime of labor trafficking was held, organized by U.S. Attorney Benjamin B. Wagner in conjunction with California Attorney General Kamala Harris. The training in Fresno was the first in a series of trainings on labor trafficking planned to be held in Sacramento, Bakersfield, and other California cities.
U.S. Attorney Wagner stated: “Labor trafficking is often an invisible crime. Our goal is to train government workers, who may be at worksites for other purposes, to see the signs of forced labor and to report it. While federal and state laws exist to combat forced labor, they have no power if no one reports it.”
The training was attended by federal, state, and local workers who visit worksites as part of their duties, including employees from the U.S. Department of Labor, California’s Employment Development Department, Department of Industrial Relations, Department of Fair Employment and Housing, the Agricultural Labor Relations Board, and Fresno, Kern, and Madera Counties’ departments of Environmental Health, Public Health, and Child Protective Services.
Ronna Bright, program manager of Central Valley Against Human Trafficking introduced the topic of labor trafficking. Jamelia Hines presented her story of domestic servitude. Speakers from the FBI, Homeland Security Investigations, U.S. Department of Labor, and California’s Department of Industrial Relations presented key indicators of labor trafficking and Fresno Police Sergeant Curt Chastain told how to report the crime.
One of the speakers, Mike Prado, Resident Agent in Charge of Homeland Security Investigations in Fresno stated: “Human trafficking, including forced labor trafficking, amounts to modern day slavery and represents one of the most deplorable crimes HSI investigates. Sadly, the egregious exploitation of workers by unscrupulous individuals and businesses occurs more frequently in the Central Valley than many people realize. Our hope is that by vigorously enforcing trafficking laws and raising public awareness, we can reduce the level of exploitation and bring those responsible to justice.”
If you or anyone you know is a victim of labor trafficking, you may call the National Human Trafficking Resource Center at any time at 1 (888) 373-7888. You may also text “HELP” or “INFO” to 233733, or visit traffickingresourcecenter.org.
Huntington Beach Man Sentenced to 10 Years in Prison for Nationwide Foreclosure Rescue ScamRead the Press Release
SACRAMENTO, Calif. — Jeremy Michael “Mike” Head, 34, of Huntington Beach, was sentenced today to 10 years in prison for a nationwide foreclosure rescue scam, United States Attorney Benjamin Wagner announced.
A federal jury found him guilty in May 2013, after a nearly four-week trial before United States District Judge Kimberly J. Mueller. Mike Head’s brother and co-defendant Charles Head, 40, was sentenced in September 2014 by Judge Mueller to 35 years in prison.
According to evidence presented at trial, Mike Head played an important leadership role in a fraud scheme that promised to help homeowners avoid foreclosure and repair their credit. He recruited and managed other members of the scheme. Through misrepresentations, fraud and forgery, the Head brothers and their associates substituted straw buyers for the victim homeowners on the titles of properties without the homeowners’ knowledge. These straw buyers were often friends and family members of the defendants. Once the straw buyers were on title to the homes, the defendants applied for mortgages to extract the maximum available equity from the homes. The defendants then shared the proceeds of the ill-gotten equity and the “rent” that the victim homeowners paid them. Ultimately, the victim homeowners were left with no home, no equity, and with damaged credit ratings. Between January 2004 and March 2006, the scam netted more than $15 million in fraudulently obtained funds from scores of homeowners, many of whom were in California.
U.S. Attorney Wagner said: “Mike Head made a small fortune taking advantage of victims who looked to him for help. Instead of helping, he stole the last remaining equity in their homes, and many victims were evicted and left destitute. He will now go to prison and pay for his crimes. This office continues to vigorously prosecute multiple variations of mortgage fraud throughout our district.”
“The scheme Head and his co-conspirators devised preyed upon individuals when they were most vulnerable and lived in fear of imminent foreclosure. Despite promises to help their victims avoid foreclosure, many were financially devastated by the scheme,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “The FBI is committed to thoroughly investigating complex mortgage fraud schemes, identifying all participants, and ensuring that those who have violated the trust of the American public face justice in federal court.”
"Today’s sentencing sends a clear message to those who commit mortgage fraud, the consequences can be severe,” said Acting Special Agent in Charge Thomas McMahon, IRS-Criminal Investigation. “The defendants in this case have hurt so many people and so many of our communities. This sentencing highlights IRS-CI's commitment to hold accountable those involved in these types of crimes."
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Michael D. Anderson and Matthew Morris are prosecuting the case.
This case began on February 28, 2008, when a federal grand jury indicted Mike Head, his brother Charles Head, and 14 other defendants with violations of mail fraud, conspiracy to commit mail fraud, and other charges. Eleven of Heads co-defendants have entered guilty pleas, and charges were dismissed against one.
Charges against the two remaining defendants, Domonic McCarns, 37, of Brea, and Anh Nguyen, 40, of Los Angeles are pending. The charges are allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of the President’s Financial Fraud Enforcement Task Force, established to wage an aggressive, coordinated effort to investigate and prosecute financial crimes. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes. For more information on the task force, please visit www.StopFraud.gov.
Oakdale Man Pleads Guilty to Possession of Child PornographyRead the Press Release
FRESNO, Calif. —Timothy Brian Werlhof, 24, of Oakdale, pleaded guilty today to possession of material involving the sexual exploitation of prepubescent minors, United States Attorney Benjamin B. Wagner announced.
According to court documents, Werlhof knowingly possessed pictures of children under the age of 12 involved in sexually explicit conduct. He possessed over 600 images, some of which were of vulnerable victims and sadomasochistic conduct. In addition to possessing the images, Werlhof made them available to others over the Internet.
The investigation in this case began when a MicroSD card was found in a parking lot in Oakdale and dropped off at the Oakdale Police Department. The card was found to contain child pornography. The police departments of Oakdale and Ceres determined that Werlhof was the owner by matching “selfies” contained on the card with a photograph of Werlhof on file with the Oakdale Police Department.
This case is the product of an investigation by the Federal Bureau of Investigation, the Oakdale Police Department, and the Ceres Police Department. Assistant United States Attorney Megan A. S. Richards is prosecuting the case.
Werlhof has been in custody since May 22, 2014. He is scheduled to be sentenced by United States District Judge Anthony W. Ishii on January 5, 2015. Werlhof faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Stockton Man Sentenced to over Three Years in Prison Possessing Sawed Off ShotgunRead the Press Release
SACRAMENTO, Calif. — Jorge Leal, 21, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to three years and one month in prison for being a felon in possession of a firearm and for possessing an unregistered sawed-off shotgun, United States Attorney Benjamin B. Wagner announced.
According to court documents, On December 2, 2013, Stockton police officers pulled over Leal, who was bicycling down N. Wilson Way in Stockton at night without a light. Leal was wearing a backpack that contained a sawed-off shotgun. Because Leal was a convicted felon—he had been convicted of first degree burglary in February 2012—he was prohibited from possessing a firearm. Further, because the sawed-off shotgun had a shortened barrel, Leal was required to register the firearm on the National Firearms Registration and Transfer Record. The firearm, however, was not registered. Leal has been in custody since making an initial appearance on these charges.
This case was the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosive and the Stockton Police Department. Assistant United States Attorney Christiaan Highsmith prosecuted the case.Mexican National Indicted for Sequoia National Park Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Toribio Cruz-Galvan (Cruz), 29, an undocumented alien from Michoacàn, Mexico, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and damaging public land and natural resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, Cruz was involved in the cultivation of 1,016 marijuana plants in the Yucca Mountain area of Sequoia National Park. The Yucca Mountain area is in an area generally known for its spring wildflower display. In addition to growing marijuana plants, park rangers found processed marijuana, a shotgun, ammunition for various firearms, and a digital scale. The marijuana cultivation operation caused significant damage to National Park land and natural resources. Fertilizer, rodenticide, propane tanks, and 300 pounds of trash were removed from the grow site. It is estimated that over one million gallons of water was diverted from a nearby spring to irrigate the marijuana plants.
This case is the product of an investigation by the National Park Service. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Cruz is detained as a flight risk and danger to the community and is scheduled for arraignment and plea on the indictment on December 15, 2014.
If convicted of the drug offenses, Cruz faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The maximum statutory penalty for the environmental crime is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Four Assistant U.S. Attorneys from the Eastern District of California Receive Prestigious Department of Justice AwardsRead the Press Release
SACRAMENTO, Calif. — Attorney General Eric Holder presented three Justice Department employees and one former employee in the Eastern District of California with Attorney General Awards at a ceremony today in Washington DC. These annual awards, which are the highest honors bestowed by the Department, recognize Department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.
“With this important event, we come together to honor some of our nation’s most distinguished, dedicated, and deserving public servants,” said Attorney General Holder. “The hard work and impressive achievements of these 278 award recipients have inspired their colleagues at every level of the U.S. Department of Justice – including me. Their leadership has been indispensable in defining the past year as one of historic accomplishment in the face of nearly unprecedented challenge.”
The Attorney General’s Award for Distinguished Service is the Justice Department’s second highest award for employee performance. The recipients of this award exemplify the highest commitment to the department’s mission. Attorney General Holder presented the Distinguished Service Award to the Eastern District Assistant United States Attorneys for their work that led to an unprecedented civil settlement with JPMorgan Chase. The settlement negotiations and the predicate fraud investigations they undertook led to what was the largest settlement with a single entity in American history - $13 billion – and the largest Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) penalty ever recovered by the department - $2 billion. The tireless efforts of the recipients advanced core missions of the department by holding wrongdoers accountable for reckless and abusive conduct that contributed to the financial crisis, as well as providing substantial compensation for federal entities supported by American taxpayers and critical assistance to neighborhoods impacted by the mortgage meltdown.
The recipients of the Attorney General’s Award for Distinguished Service include the Eastern District of California’s Assistant U.S. Attorneys David T. Shelledy, Kelli L. Taylor, and Colleen M. Kennedy and former Assistant U.S. Attorney Richard Elias.
“We are delighted that the Attorney General has recognized Assistant U.S. Attorneys David T. Shelledy, Kelli L. Taylor, and Colleen M. Kennedy and former Assistant U.S. Attorney Richard Elias for their outstanding contributions to the Department and its mission,” said Benjamin B. Wagner United States Attorney for the Eastern District of California. “These awards are deserved recognition for these skilled attorneys, whose tireless work and dedication brought about such a large settlement. Today’s awardees exemplify what it truly means to be a public servant and we are proud of their extraordinary service.”
The civil settlement with JPMorgan Chase is the largest recovery ever in a case handled by the Eastern District of California’s U.S. Attorney’s Office. The settlement resulted in part from an investigation that determined that JPMorgan sold billions of dollars of residential mortgage-backed securities (RMBS) that were backed by pools of mortgage loans that contained loans that did not comply with the loan originators’ underwriting guidelines, were secured by properties with inflated appraisals, were supported by inaccurate loan-to-value or debt-to-income ratios, or were originated in violation of federal and state laws and regulations, while misrepresenting to investors the quality of the loans in the pools and the risk of loss.
Two Facing Federal Charges for Patterson Bank RobberyRead the Press Release
FRESNO, Calif. — Two Central Valley men are now in federal custody after a Fresno grand jury returned a two-count indictment charging them with armed bank robbery and brandishing a firearm during a crime of violence, United States Attorney Benjamin B. Wagner announced.
Juan Carlos Reyes, 24, of Tracy, and Jose Valadez Jr., 33, of Patterson, were indicted on September 18, 2014. Valadez was arrested on the day of the robbery and has been in custody since then on a state charge, which was dismissed Friday. Reyes was arrested on a federal warrant on October 11, 2014, after he was detained in Manteca by local law enforcement on suspicion of an unrelated offense.
According to the indictment, on June 19, 2014, Reyes and Valadez robbed the Wells Fargo Bank at 1035 Sperry Avenue in Patterson. Both of the men were armed, one with a handgun and the other with a sawed-off shotgun.
This case is the product of an investigation by the Federal Bureau of Investigation and the Stanislaus County Sheriff’s Department. Assistant United States Attorney Melanie L. Alsworth is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty for armed bank robbery of 25 years in prison and a $250,000 fine. The mandatory minimum statutory penalty for brandishing a sawed-off shotgun during a crime of violence is 10 years in prison with a maximum of life in prison. The mandatory minimum statutory penalty for brandishing a handgun during a crime of violence is seven years in prison with a maximum of life in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tracy Man Enters Guilty Plea to Fraud Charges in Phantom Debt Collection CaseRead the Press Release
SACRAMENTO, Calif. —Kirit D. Patel, 71, of Tracy, pleaded guilty today to four counts of mail fraud and wire fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Patel was the owner and president of Broadway Global Master, a company that purported to be a debt collection company. From 2010 to 2012, callers operating from outside the United States placed more than two million phone calls to consumers in which they impersonated law enforcement officers and threatened to arrest the consumers if they did not provide immediate payment for online payday loans that the callers claimed were delinquent. In most cases, the consumers did not owe delinquent loans and the callers did not have the authority to collect the debts from those who did owe any balances on payday loans. Broadway Global Master processed consumers’ payments when they eventually relented and paid the non-existent debts to avoid the continued threat of arrest. From 2010 to 2012, Patel’s company received more than $5 million in payments from consumers, most of which was immediately transferred out of the country.
This case is the product of an investigation by the United States Secret Service. Assistant United States Attorney Matthew G. Morris is prosecuting the criminal case. In April 2012, the Federal Trade Commission filed a civil lawsuit against Patel and his two companies (2:12-cv-855-JAM) alleging violations of the Federal Trade Commission Act and the Fair Debt Collection Practices Act.
Patel is scheduled to be sentenced by Judge John A. Mendez on February 10, 2015. Patel faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Three Plead Guilty to Charges Related to Methamphetamine Trafficking in Kern CountyRead the Press Release
FRESNO, Calif. — Three men entered guilty pleas to drug-related charges arising out of two different cases, United States Attorney Benjamin B. Wagner announced. In the first case, two Southern California residents pleaded guilty today to use of an interstate facility to aid racketeering, and in the second case, a Bakersfield resident pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine.
Southern California Men Plead Guilty to Using a Cellphone to Aid Racketeering
According to court documents, Luis Alfonso Mendivil, 22, of Riverside, and Jonathen Leyva, 27, of Rialto, admitted that they conspired with others to distribute approximately 3.5 kilograms of methamphetamine. From September 1, 2013, to October 22, 2013, they used a cellphone to carry on an unlawful methamphetamine distribution operation in Bakersfield.This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Department.
Both men are scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on December 22, 2014. Mendivil and Levya face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.Bakersfield Man Pleads Guilty to Methamphetamine Distribution Conspiracy
According to court documents, Juan Angel Lopez, 32, of Bakersfield, admitted that from March 1, 2014, to July 10, 2014, he knowingly and intentionally conspired with others to distribute methamphetamine in Bakersfield. On April 18, 2013, a Kern County Sheriff’s deputy stopped Lopez’s vehicle and, hidden under the center console, found two firearms, a distribution amount of methamphetamine in a clear plastic bag, and $844 in cash. Also found in the vehicle were four cellphones. Lopez admitted that he knowingly possessed the 74.31 grams of methamphetamine seized from his vehicle and also acknowledged that he possessed the two firearms, which he was prohibited from possessing since he was a previously convicted felon.This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation that is composed of the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Bakersfield Police Department, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Southern Tri-County High Intensity Drug Trafficking Area Task Force.
Lopez is scheduled to be sentenced by Judge O'Neill on December 22, 2014. Lopez faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Assistant United States Attorney Brian Delaney is prosecuting both cases.
Man Sentenced to over Four Years in Prison for DUI Death in Kings Canyon National ParkRead the Press Release
FRESNO, Calif. — Nicholas Moser, 25, was sentenced today four years and four months in prison by United States District Judge Lawrence J. O’Neill for involuntary manslaughter and driving under the influence of alcohol, United States Attorney Benjamin B. Wagner announced.
According to court documents, Moser was intoxicated when he lost control and rolled his truck near Cedar Grove, in the Kings Canyon National Park. The incident occurred during the early morning hours of Saturday, August 31, 2013, the first day of the Labor Day weekend. Three of Moser’s passengers, who were sitting in the rear of his truck, were ejected, causing the death of Thomas Wefald and serious injuries to the other two. Another passenger in the cab was also injured, as was Moser.
Moser and others drank alcohol and smoked marijuana before Moser drove the group several miles from Cedar Grove to Muir Rock, located at the end of Highway 180, where they remained for about a half an hour. The accident occurred shortly after Moser began the return trip to Cedar Grove.
This case was the product of an investigation by the National Park Service. Assistant United States Attorney Michael Frye prosecuted the case.IRS Employee Arrested Today Following Indictment for Filing False Tax ReturnsRead the Press Release
FRESNO, Calif. — Kimberly Brown-English, 52, of Fresno, was arrested today after a grand jury indicted her last Thursday for filing fraudulent tax returns while she was an employee of the IRS and for making an opportunity for others to file false tax returns, United States Attorney Benjamin B. Wagner announced. Brown-English is scheduled to be arraigned today at 1:30 p.m. before U.S. Magistrate Judge Gary S. Austin in Fresno.
According to court documents, Brown-English filed returns with claims for false deductions and credits, such as dependents, the child tax credit, and the head of household status. The false returns allowed Brown-English and other tax payers to obtain undue tax refunds or improperly reduce their tax liabilities.
This case is the product of an investigation by the Treasury Inspector General for Tax Administration and the Tax Division of the Department of Justice. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.
If convicted, Brown-English faces a maximum statutory penalty of five years in prison, a $10,000 fine, and dismissal from office. Any sentence, however, would be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables and applicable statutory sentencing factors.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Man Sentenced to over 6 Years in Prison on Firearm ChargeRead the Press Release
FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Anthony Murua, 36, of Fresno, to six years and five months in prison for being a convicted felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, a report was filed with the Fresno Police Department alleging that Murua was making harassing telephone calls and sending threatening text messages, including a picture of a gun. During a search of Murua’s home, a Jimenez Arms 9 mm handgun and ammunition were found in his bedroom. Murua’s prior felony convictions include domestic abuse, assault and robbery.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant United States Attorney Melanie L. Alsworth prosecuted the case.
Last of 4 Methamphetamine Traffickers Sentenced to PrisonRead the Press Release
SACRAMENTO, Calif. — The last of four methamphetamine traffickers, Jose Angel Martinez Chairez, 39, was sentenced today to 10 years in prison, United States Attorney Benjamin B. Wagner announced.
On July 29, 2014, Angel Martinez Diaz, 27, was sentenced to 10 years in prison and Jose Ramirez Verduzco, 29, was sentenced to 13 years in prison. On August 12, 2014, Jose Maria Villareal, 26, was sentenced to 11 years and three months in prison. All four defendants formerly resided in San Jose.
According to court documents, on July 10, 2013, the four defendants travelled in two vehicles from San Jose to a shopping center just off Interstate Highway 5 in Anderson, to sell a large quantity of crystal methamphetamine to an individual who purported to be interested in purchasing the drugs. In reality, that person was a confidential informant working for law enforcement agents. Under surveillance by the agents, the informant met with Martinez Diaz, Martinez Chairez, and Villareal who showed him a one-kilogram package of crystal methamphetamine represented to be a sample of the total 14 kilograms brought to sell to the CI. After a short discussion, the remaining drugs were brought up to the site in a second vehicle with a hidden compartment. Law enforcement agents watched as the defendants showed the remaining methamphetamine, after which the agents closed in and arrested the four defendants.
A total of 13.868 kilograms (30.5 pounds) of 99 percent pure crystal methamphetamine was seized. This represents approximately 2,760 dosage units according to documents filed in the case. That amount of drugs was three times the top level of the U.S. Sentencing Guidelines Drug Table, even taking into account the recent amendments passed by the U.S. Sentencing Commission which increased the amount of drugs needed to reach this highest level.
According to U.S. Attorney Benjamin Wagner, “Methamphetamine is, by far, the largest drug problem faced in California in terms of the number of people abusing it and the detrimental impact it has on society. A 2013 study commissioned by the Office of National Drug Control Policy titled “Adam II” showed that slightly over 50 percent of the recently arrested inmates at the Sacramento County Jail tested positive for methamphetamine. That was an increase of 10 percent over the prior year. Additionally, the increase in both the quantity and quality of the methamphetamine seized in the last three years in the drug cases prosecuted by this office shows a marked increase in the availability of high purity crystal methamphetamine, which is often traced back to drug trafficking organizations in Mexico.”
This case was the product of an investigation by the U.S. Drug Enforcement Administration –Redding Resident Office and the Shasta County Interagency Narcotics Task Force. Assistant United States Attorney Richard Bender prosecuted the case.
Citrus Heights Man Sentenced for Child Pornography CrimeRead the Press Release
SACRAMENTO, Calif. — Jason Carlsen, 41, of Citrus Heights, was sentenced today by United States District Judge John A. Mendez to five years in prison for possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, in August 2013, Carlsen was found with hundreds of images and videos showing child pornography on his cellphone. Carlsen used file sharing programs to send and receive child pornography with others, and in May 2013, he sent a series of text messages to a recipient in Kentucky that included sexually explicit photographs of a juvenile believed to be approximately 13 years old. Carlsen has been in custody since his arrest in March 2014, and on May 13, 2014, he pleaded guilty to the possession of child pornography charge.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Department. Assistant United States Attorneys Kyle Reardon and Christopher S. Hales prosecuted the case.
Tulare County Resident Pleads Guilty to Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — Baltazar Rodriguez, 45, of Terra Bella, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on property where he resided, U.S. Attorney Benjamin B. Wagner announced.
In pleading guilty, Rodriguez also acknowledged that he possessed a firearm in connection with the conspiracy. According to court records, law enforcement officers seized over 1,000 marijuana plants from 39.6 acres of farm land in Terra Bella where Baltazar Rodriguez resided with his family. Inside the Rodriguez residence, officers found a loaded, unregistered revolver in his bedroom, a digital scale commonly used to weigh controlled substances, and documents showing wire transfers of cash to Mexico. Rodriguez’s guilty plea follows the convictions and sentencing of the other five defendants.
Baltazar Rodriguez is scheduled for sentencing on December 15, 2014. He faces up to 20 years in prison and a $1 million fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration, the Sheriff’s offices of Tulare, Kern, Ventura, and San Luis Obispo Counties, and the Escondido Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
Sanger Man Pleads Guilty to Stealing 57 Vehicle Batteries from U.S. Mail TrucksRead the Press Release
FRESNO, Calif. — Rene Garcia, 47, of Sanger, pleaded guilty today to stealing government property, United States Attorney Benjamin B. Wagner announced. Garcia has been detained as a flight risk in federal custody since his arrest on August 18, 2014.
According to his plea agreement, on numerous occasions between September 2012 and March 2013, Garcia entered the parking lot of the U.S. Post Office in Selma and stole vehicle batteries out of the U.S. Mail trucks parked there. In all, Garcia stole a total of 57 vehicle batteries, which he subsequently sold. During at least one of the battery thefts, Garcia wore a mask to conceal his identity and used wire cutters to gain access through a fence surrounding the mail truck parking lot. The U.S. Postal Service lost more than $9,700 as a result of Garcia’s thefts.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Baker is prosecuting the case.
Garcia is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on December 15, 2014. Garcia faces a maximum statutory penalty of 10 years in prison, a $250,000 fine, or both. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
EDD Employee Sentenced to 2.5 Years in Prison for Disability FraudRead the Press Release
SACRAMENTO, Calif. — An employee of the Employment Development Department and a co-defendant for a scheme to defraud the EDD Disability Insurance Program, United States Attorney Benjamin B. Wagner announced.
EDD employee Simeon Shawnise Gregory, 35, of Moreno Valley, was sentenced to two years and six months in prison, and Terrance Rychan Smalls, 32, of Moreno Valley, was sentenced to six months in prison and six months home confinement. Earlier this year, co-defendants Sarah Elizabeth Trout, 35, of Riverside, was sentenced to five months in prison and five months of home detention, and Theresa Helena Campbell, 37, of Riverside, was sentenced to 18 months in prison.
According to court documents, Gregory used her position as an EDD Disability Insurance Program Representative to improperly process and manipulate the claims of Trout, Campbell, Smalls, and others. In return for fraudulently extending her disability claim, Trout paid Gregory up to half of her disability benefits. For Campbell and Smalls, Gregory caused EDD to issue specific payments, inactivated warning flags, and forged doctor’s certificates regarding the claimed disability. For Campbell, Gregory found an innocent individual with Campbell’s same name and used that individual’s legitimate wages to get Campbell fraudulent benefits. Gregory’s actions disabled the checks and balances that allow EDD to discover fraudulent claims. As a result of this scheme, the defendants defrauded the State of California of more than $360,000.
“Today’s sentencing highlights EDD’s continuing efforts to actively pursue and prosecute fraud against the California Disability Insurance program. The defendant in this case violated our public trust by participating in a complex scheme to defraud a vital program that serves as a lifeline for millions of disabled workers. It’s intolerable,” said Patrick W. Henning Jr., director of the California Employment Development Department (EDD). “Our Investigation Division is committed to working with our law enforcement partners to safeguard this and other EDD programs. Though this is a rare transgression not at all reflective of our dedicated staff, we take aggressive action whenever and wherever fraud is found.”
This case was the product of an investigation by the Employment Development Department, Investigation Division. Assistant United States Attorney Jared C. Dolan prosecuted the case.Two Indicted on Drug Trafficking Charges After Arrests in Stockton; Three Indicted for Growing Marijuana in Lassen National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned three indictments today for charges of trafficking cocaine and heroin and cultivating marijuana in a national forest, United States Attorney Benjamin B. Wagner announced.
99 Kilograms (218 lbs) of Cocaine Seized
In the first indictment, Todd Andrew Ayster, 49, of Long Beach, was charged with possession of cocaine with intent to distribute. According to court documents, on August 31, 2014, Aster was arrested after a CHP officer conducted a traffic stop in Stockton. A strong odor of axle grease was coming from the vehicle, and the officer’s K9 alerted to narcotics at two locations on the exterior of the vehicle. A subsequent search of the vehicle and attached camper led to the recovery of 99 kilograms of cocaine. This case is the product of an investigation by the California Highway Patrol and the Drug Enforcement Administration.Heroin, Cocaine, and Firearms Seized
In the second indictment, Cedric Sewell, 46, of Hayward, was charged with possession with intent to distribute heroin, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. According to court documents, on March 5, 2014, law enforcement officers searched Sewell’s residence in Stockton and seized over five kilograms of heroin, 500 grams of cocaine, several firearms (including an AR-15 assault rifle), approximately $67,000 in cash, a money counter, and a cache of ammunition. This case is the product of an investigation by the Alameda County Narcotics Task Force and the Drug Enforcement Administration.Two Large Marijuana Cultivation Sites Eradicated from Lassen Forest
In the third indictment, Tiburcio Olmos Munoz, Adalid Rosales Lopez, and Venustiano Gonzalez-Jauregui, were charged with conspiracy to cultivate marijuana plants in the Lassen National Forest. According to court documents, on August 25, 2014, law enforcement agents served a search warrant at a large cultivation site in the Lassen National Forest. Gonzalez-Jauregui was there, and 6,769 marijuana plants were eradicated from the site. That same day, agents discovered a nearby site but due to exposure to highly toxic pesticides used in the first grow site, were unable to explore the second site that day. On September 4, 2014, law enforcement agents returned to the second site and arrested Munoz and Lopez. This case is the product of an investigation by the United States Forest Service, the Shasta County Sheriff’s Office, and the California Department of Fish and Wildlife.If convicted, Ayster, Munoz, Lopez and Gonzalez-Jauregui face a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Sewell faces maximum sentences of life in prison and fines up to $20 million for the drug possession charges and a maximum statutory penalty of 10 years in prison and a $250,000 fine for being a felon in possession of a firearm. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Assistant United States Attorney Olusere Olowoyeye is prosecuting all three cases. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stockton Woman Sentenced to Six Years in Prison for Aggravated I.D. Theft in Large Scale U.S. Mail Theft and Bank Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced today that Regina L. Perea, 34, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to six years in prison for three counts of aggravated identification theft.
According to court documents, Perea and her husband, Rudy A. Trujillo, 35, also of Stockton, possessed hundreds of pieces of stolen U.S. mail, along with hundreds of stolen checks, credit cards and identification documents at their Stockton residence. During a search of their residence, law enforcement recovered the stolen mail and found evidence indicating that the defendants were altering checks, and manufacturing credit cards. When Trujillo and Perea were arrested in San Jose, they were driving a stolen vehicle with stolen license plates and were again in possession of a large quantity of stolen U.S. mail, checks, credit cards, and identification documents. Perea had assumed the identity of at least two additional female victims while she and Trujillo were on the run from law enforcement.
This case is the product of an investigation by the United States Postal Inspection Service and the San Joaquin County Sheriff's Office with assistance from the Stockton Police Department, the San Jose Police Department, the Placer County Sheriff's Office, and the Delta Regional Auto Theft Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
San Francisco Division Inspector in Charge Rafael Nunez of the United States Postal Inspection Service stated: “We are working closely with the U.S. Attorney's Office and our partners in law enforcement to arrest and prosecute all those responsible for stealing U.S. Mail and using the contents of stolen U.S. Mail in furtherance of fraud and identity theft crimes."
On May 15, 2014, Perea and Trujillo pleaded guilty to three counts of aggravated identity theft. Trujillo, who is in federal custody, is scheduled to be sentenced on November 6, 2014. He faces a mandatory minimum sentence of two years in prison for each count of aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Stockton Woman Sentenced to over 5 Years in Prison for ID Theft and FraudRead the Press Release
SACRAMENTO, Calif. — Frances Marie Charles, 35, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to five years and five months in prison for aggravated identity theft and mail fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, between June 2012 and December 2013, Charles participated in a scheme to obtain replacement American Express credit cards in the names and account numbers of others. In total, the scheme yielded over 215 credit cards in the names of at least 172 different people. Charles would make calls to American Express and use stolen identification and financial information of victims to cause the replacement cards to be sent to Stockton. Charles and others would then use the cards to make various fraudulent charges and purchases. The total value of the transactions attempted with the cards was well in excess of $400,000.
In sentencing Charles, Judge Nunley noted how much identity theft disrupts the lives of victims, and how much time victims often need to spend addressing the effects of identity theft in their lives.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Christopher S. Hales prosecuted the case.
Nevada County Man Who Shot Federal, State Officers Charged with Federal CrimesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Brent Douglas Cole, 61, of Nevada County, charging him with assault on a federal officer with a deadly weapon which inflicted bodily injury, assault on a person assisting a federal officer with a deadly weapon which inflicted bodily injury, and discharge of a firearm during and in relation to a crime of violence, United States Attorney Benjamin B. Wagner announced.
According to court documents, on June 14, 2014, a BLM ranger stopped Cole after he observed Cole driving his truck on a closed dirt road on BLM land near the South Yuba River campground. The ranger warned Cole not to drive on the road again and allowed him to leave without issuing him a citation. The ranger continued up the dirt road and discovered a makeshift campsite with two motorcycles — one of which had been reported stolen, and one had expired tags. The ranger requested the CHP’s help to impound the motorcycles. While he and a CHP officer were preparing to move the two motorcycles, Cole arrived at the campsite armed, and an exchange of gunfire took place. Cole wounded the BLM ranger in the left shoulder and the CHP officer in the right, lower leg. Cole was struck several times by law enforcement. Cole, the BLM ranger, and the CHP officer received medical attention, and all will survive their wounds.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Land Management, the Nevada County Sheriff’s Office, the Nevada County District Attorney’s Office, and the California Highway Patrol. Assistant United States Attorneys Michael D. McCoy and Heiko Coppola are prosecuting the case.
If convicted, Cole faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former California News Helicopter Pilot SentencedRead the Press Release
SACRAMENTO, Calif. — John Michael Dial, 58, of Skaneateles, New York, was sentenced today by United States District Judge Morrison C. England Jr. to two years in prison for aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, Dial used the names of actual persons to commit violations of federal law such as false statements to the FAA and forgery of a U.S. passport.
According to court documents:
- From December 16, 2009, to August 4, 2010, Dial was hired as a television news helicopter pilot and operated news helicopters in the Bay Area without a pilot’s license.
- Dial worked for an air ambulance service in Susanville and provided numerous false identification documents to his employer. From July 3, 2011, to November 7, 2011, he operated a helicopter approximately 63 times without having a valid pilot certificate.
- On March 15, 2012, Dial was hired to work as a television news helicopter pilot in Sacramento. Dial used his real name but the FAA certificates he provided were fraudulent. He flew two times without having a valid pilot certificate.
- Dial used the identity of a former co-worker to gain employment with an air ambulance service in New York, and he created a fraudulent United States passport using that person’s identity.
Dial’s identity theft became clear when he was stopped in Idaho for a traffic violation and produced falsified ID from Vermont. Dial pleaded guilty on July 31, 2014.
“The sentencing today of John Michael Dial for aggravated identity theft is a clear signal that the safety of the Nation’s air transportation system remains a high priority for both the Office of Inspector General and the Department of Transportation,” said William Swallow, DOT OIG regional Special Agent-In-Charge. “We will continue to work with our prosecutorial and law enforcement colleagues to prevent and detect violations of federal laws designed to ensure the safety of the public and the Nation’s transportation systems, and punish those who would seek to compromise that safety.”
“Dial stole identities, creating and forging numerous counterfeit documents to conceal his identity and criminal history as he moved from state to state to outrun his past. His crime presented a threat to public safety as his true identity and criminal history precluded him from obtaining access to aircraft and the certification necessary for employment as a commercial helicopter pilot,” said Special Agent in Charge Monica Miller of the FBI’s Sacramento field office. “Despite his efforts to evade law enforcement, Dial was pursued across numerous state lines and was ultimately apprehended in Skaneateles, New York.”
This case was the product of an investigation by the U.S. Department of Transportation, Office of Inspector General, the Federal Bureau of Investigation, and the United States Secret Service with the assistance of the Cascade, Idaho, and McCall, Idaho Police Departments. Assistant United States Attorneys Kyle Reardon and Andre Espinosa prosecuted the case.
Visalia Doctor Sentenced for Illegally Dispensing OxycodoneRead the Press Release
FRESNO, Calif. — Dr. Terrill Eugene Brown, 61, of Visalia, was sentenced today by United States District Judge Lawrence J. O'Neill to four years and nine months in prison for causing the distribution and dispensing of oxycodone and structuring financial transactions to evade a reporting requirement, United States Attorney Benjamin B. Wagner and Fresno County District Attorney Elizabeth Egan announced. In addition, Brown was ordered to forfeit more than $182,000 and three BMW sedans that were involved in or obtained as a result of his criminal activity.
According to court documents, Brown, a medical doctor formerly licensed by the State of California, prescribed large quantities of highly addictive prescription drugs, including oxycodone and hydrocodone, without medical necessity. Brown prescribed to customers who did not have a legitimate medical need and out of the usual course of his professional practice. Brown deposited the cash earned from these prescriptions into different personal bank accounts in a manner designed to avoid currency transaction reporting requirements that would have alerted the Treasury Department to the large cash transactions.
Oxycodone, also known as “oxy,” is a narcotic analgesic or painkiller and is classified as a Schedule II controlled substance. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States, and dealers profit by selling such medication on the street. Oxycodone-based Schedule II drugs have a high potential for abuse, and users will often crush and snort the pills or dissolve and inject them to get an immediate high. The abuse can lead to addiction, overdose, and sometimes death.
“Deaths from prescription drug abuse have been increasing dramatically in recent years,” said U.S. Attorney Wagner. “Studies have shown that a significant portion of chronic prescription drug abusers obtain their drugs from doctors. A few doctors like Dr. Brown, who deliberately over-prescribe for profit, are fueling a deadly epidemic.”
This case was the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Medical Board of California, California Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Kathleen A. Servatius and Laurel J. Montoya, and Fresno County Deputy District Attorney Nathan Lambert who was sworn in as a Special Assistant U.S. Attorney for the case.
This case was brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the IRS-Criminal Investigation, the DEA, and the U.S. Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
In a related case, on April 11, 2013, a federal grand jury charged 13 defendants for a scheme where they obtained prescriptions for oxycodone, hydrocodone, and medical marijuana cards from Dr. Brown in Modesto. They recruited other individuals to obtain prescriptions and marijuana cards from the doctor and paid them for the prescriptions and marijuana cards. After obtaining the oxycodone and hydrocodone pills, the defendants shipped the pills to other states.
Eight defendants in that case pleaded guilty and have been sentenced as follows:
David Ruem, of Tacoma, Wash.; sentenced to 10 years and one month in prison
Phary Chim, of Kent, Wash.; sentenced to four years and three months in prison;
Sdey Chim, of Modesto; sentenced to three years and 10 months in prison;
Chanrath Yath, of Modesto; sentenced to three years and four months in prison;
Phally Thach, of Modesto; sentenced to two and a half years in prison;
Raeb Chou, of Modesto; sentenced to two years in prison;
Cindy Doeum, of Kent, Wash.; sentenced to three years of probation; and
Chantha Chim, of Murietta; sentenced to three years of probation.Another defendant has pleaded guilty and is awaiting sentencing. The charges against the remaining four defendants are pending and are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Nuestra Familia Gang Member Sentenced to More Than 31 Years in Prison for Drug TraffickingRead the Press Release
SACRAMENTO, Calif. — Robert Hanrahan, aka Bubba, 41, of Salinas, was sentenced today by United States District Judge William B. Shubb to 31 years and three months in prison for conspiracy to distribute methamphetamine and cocaine, United States Attorney Benjamin B. Wagner announced.
According to facts admitted during Hanrahan’s guilty plea, beginning in 2003, he acted as a leader of the Nuestra Familia, a violent prison gang based within the California and Federal prison systems whose members exert control over street-level Norteño gang members engaged in drug trafficking and violent crime. Hanrahan oversaw the establishment of Street Regiments in San Francisco and the surrounding Bay Area counties. Hanrahan was the primary supplier of methamphetamine and cocaine to the San Francisco regiment between 2004 and 2005. During the drug conspiracy, in August 2004, Salinas police served a state search warrant for controlled substances at a Salinas residence. Inside the residence, officers found Hanrahan and two pounds of methamphetamine, a pound of cocaine, drug ledgers, two digital scales, empty baggies, a stolen .40-caliber handgun, a 12‑gauge shotgun, and a rifle.
According to the plea agreement, in January 2006, while Hanrahan’s Salinas drug case was pending, he fled to Mexico. The NF funneled money obtained through drug trafficking to him for living expenses in Mexico, which included high phone bills. Western Union receipts traced the flow of NF drug money from Northern California to Hanrahan in Mexico. Ultimately, Hanrahan was apprehended at the U.S.-Mexico border on November 12, 2006.
This case is the product of an investigation by the FBI’s Stockton Violent Crime Task Force, the San Joaquin County Metropolitan Narcotics Task Force (METRO), the Stockton Police Department, the Salinas Police Department, the Watsonville Police Department, and the Monterey County Sheriff’s Office, and the California Department of Corrections and Rehabilitation into the activities of the Nuestra Familia. Assistant United States Attorneys Jason Hitt and William S. Wong prosecuted the case.
This case and a related indictment have resulted in a number of significant sentences:
On April 21, 2010, Manuel Gauna was sentenced to more than 21 years in prison.
On December 13, 2010, Richard Mendoza was sentenced to 17 years in prison.
On February 22, 2011, Bismark Ocampo was sentenced to 28 years in prison.On May 25, 2011, the trial defendants were sentenced to the following:
Larry Amaro was sentenced to 40 years in prison.
Ernest Killinger was sentenced to 362 years in prison.
Gerardo Mora was sentenced to more than 33 years in prison.
Jason Stewart-Hanson was sentenced to 25 years in prison.
On July 25, 2011, Gabriel Caracheo was sentenced to 25 years in prison.
On July 27, 2011, David Ramirez was sentenced to 15 years in prison.
On September 26, 2011, Fernando Villalpando was sentenced to 20 years in prison.
On October 17, 2011, Faustino Gonzalez was sentenced to more than 15 years.
On November 28, 2011, Oscar Campos-Padilla was sentenced to 14 years in prison.
On September 24, 2012, Rebecca Guzman was sentenced to 14 years in prison.
On January 22, 2013, Juan Gallegos, aka Wino, was sentenced to 28 years in prison.
On December 23, 2013, Carolyn Huerta, was sentenced to 10 years in prison.Hawaii-Bound Meth Trafficker SentencedRead the Press Release
FRESNO, Calif. — Oscar Rodriguez, 31, of Sanger, was sentenced today by United States District Judge Lawrence J. O'Neill to four years and one month in prison, United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 31, 2013, Transportation Security Agency officers stopped Rodriguez at the Modesto Airport after his baggage tested positive for the presence of a prohibited substance. As the result of a pat-down search, officers discovered two zip-lock baggies containing methamphetamine. The combined weight of the packaging materials and methamphetamine was 2.68 pounds. Rodriguez was carrying boarding passes for flights from Modesto to San Francisco and from San Francisco to Maui, Hawaii.
This case was the product of an investigation by the Drug Enforcement Administration, the Transportation Security Administration, and the Modesto Police Department. Assistant United States Attorney Michael Frye prosecuted the case.
Fresno Man Sentenced to 18 Months in Prison for Laser Strikes on CHP PlaneRead the Press Release
FRESNO, Calif. — David Walter Fee, 22, of Fresno, was sentenced today to 18 months in prison, to be followed by two years of supervised release, for aiming a laser pointer at a California Highway Patrol airplane, announced U.S. Attorney Benjamin B. Wagner.
According to court documents, the CHP airplane, Air 43, was struck up to 50 times by a powerful green laser pointer. As a result, the pilot suffered temporary blindness and Air 43 was forced to break away from a burglary in progress at a Fresno middle school. The CHP pilot reported that he gets struck by lasers almost every night and this incident was “the worst.”
The case was the product of an investigation by the FBI’s Fresno Office, the California Highway Patrol, and the Fresno Police Department. Assistant U.S. Attorneys Karen A. Escobar and Michael G. Tierney prosecuted this case.
“The public should be outraged by this reckless behavior that jeopardizes both air crews and the public,” said Supervisory Special Agent Jacqueline Neumann of the Sacramento FBI’s Fresno resident agency. “The public has the power to stop this activity. If anyone witnesses aircraft laser incidents, they should report it by calling 911 immediately. The public is also encouraged to have conversations with friends and family to improve understanding of the risks and discourage reckless usage of hand-held laser devices. The threat to aircraft safety is real and the penalties for this activity can be substantial.”
According to the latest statistics from the FBI, in 2014, the FAA has received 104 reports of laser incidents involving aircraft from the Eastern District of California. Fresno leads in the number of reported incidents in our district followed by Modesto, Bakersfield, and Sacramento, in that order.
Thousands of laser attacks go unreported every year. If you have information about a laser incident, or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.
Foreclosure Rescue Scheme Defendants SentencedRead the Press Release
SACRAMENTO, Calif. — Four defendants involved in a scheme that victimized distressed homeowners were sentenced today, United States Attorney Benjamin B. Wagner announced.
United States District Judge William B. Shubb sentenced Jewel Hinkles, aka Cydney Sanchez, 64, of Los Angeles, to five years in prison; Jesse Wheeler, 37, of Roseville, to three years in prison, Cynthia Corn, 61, of Oakland, to two and a half years in prison and Brent Medearis, 48, of Modesto, to one year and 10 months in prison.
Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency Office of Inspector General stated: “It is particularly vile for fraudsters to target and take advantage of individuals who are scared, vulnerable and simply trying to protect their families and save their home. Jewel Hinkles, Jesse Wheeler, Cynthia Corn, and Brent Medearis will now have time to reflect on their actions. We will continue to pursue any individual who perpetrates such fraud, and we are proud to have worked with our law enforcement partners on this case.”
“This scheme preyed upon desperate, financially distressed homeowners who were at imminent risk of losing their homes to foreclosure,” said Supervisory Special Agent Todd Irinaga of the Sacramento FBI’s Modesto resident agency. “This demonstrates the success of a multi-agency investigation, and we are thankful for the collaborative efforts of our San Joaquin Valley Mortgage Fraud Task Force partners. The FBI will always work with its law enforcement partners to identify and investigate individuals who flout laws and exploit vulnerable citizens for personal gain.”
According to court documents, Hinkles was the founder and general manager of Horizon Property Holdings LLC, in Beverly Hills. From 2008 through 2010, Hinkles offered a service called “Save My Home” or “Homesaver” that promised to rescue financially distressed homeowners from foreclosure and reduce the principal on homeowners’ mortgages. Horizon offered its program directly to clients and also through several layers of “affiliates,” who promoted and sold the program to clients, mostly in Northern California.
The defendants told homeowners they would save their residences from foreclosure by arranging for investors to purchase their existing mortgage at a discounted price, thereby reducing the homeowner’s principal and monthly mortgage payment. To prevent foreclosure, the defendants filed fraudulent deeds transferring an interest in the homeowner’s property to a fictitious entity called Pacifica Group 49/II. In many instances, the defendants also filed fraudulent petitions in bankruptcy court, often naming both the homeowner and Pacifica Group 49/II as the debtor. The purpose of these petitions was to invoke the automatic provisions of federal bankruptcy law that bring to an immediate halt any foreclosure actions against a debtor’s property.
Because the fraudulent deeds and bankruptcy petitions delayed foreclosure proceedings, the defendants were able to pretend that they were providing a legitimate service and continue to collect fees from defrauded homeowners. To enroll in the Save My Home program, clients were required to pay an initial payment of approximately $3,500 and monthly fees up to $1,500. The Homesaver program required clients to pay an initial payment ranging from $1,750 to $6,500 and monthly fees up to $850. In total, the scheme collected at least $4.9 million from more than 1,000 homeowners, including homeowners whose mortgages were owned by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). However, according to court documents, the defendants never arranged for the purchase of a single mortgage from any of the clients’ lenders and never negotiated a single mortgage principal reduction for any of Horizon’s clients.
This case was the product of an investigation by the Federal Housing Finance Agency, Office of Inspector General; the United States Postal Inspection Service; the Federal Bureau of Investigation; and the Stanislaus County District Attorney’s Office. Assistant United States Attorneys Lee S. Bickley and Matthew D. Segal prosecuted the case.Escondido Resident Pleads Guilty to Bulk Cash SmugglingRead the Press Release
FRESNO, Calif. — Martin Rojas-Cuamba (Rojas), 46, of Escondido, pleaded guilty today to bulk cash smuggling in Tulare, Kern, and San Diego Counties, U.S. Attorney Benjamin B. Wagner announced.
According to the plea agreement, Rojas smuggled $88,950 in cash from the United States to Mexico in order to evade the currency transaction reporting requirement. According to court documents, Rojas was connected to several marijuana cultivation operations on agricultural lands in Terra Bella and Bakersfield from which he profited. During a search of his residence in Escondido, law enforcement officers seized $53,750 in cash, which Rojas has agreed to forfeit.
Rojas is scheduled for sentencing on December 15, 2014, before U.S. District Judge Lawrence J. O’Neill. Rojas faces a maximum prison term of five years and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration, the Sheriff’s offices of Tulare, Kern, Ventura, and San Luis Obispo Counties, and the Escondido Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.